As an employer, you have a million and one tasks to take care of. One of these oh-so-important responsibilities is withholding payroll taxes from employee wages. And, your job doesn’t stop there. You also need to fill out and remit certain withholding forms to your state. Get to know all about employee withholding by state.
Employee withholding recap
Employers are responsible for calculating, withholding, and remitting certain employment and payroll taxes. So, which taxes do you need to calculate and withhold from your employees’ paychecks? Well, it depends on your state. However, here’s a list for quick reference:
- Federal income tax (FIT): Amount varies based on Form W-4 information
- State income tax (SIT): Varies by state (some states do not have state income tax)
- Local income tax: Varies by state and locality
- FICA tax: 6.2% for Social Security tax and 1.45% for Medicare tax
- SUI (state unemployment) tax: Only applies to employees in Alaska, New Jersey, and Pennsylvania
- State-specific taxes: Varies by state
Keep in mind that each employee’s taxes will vary depending on certain factors, like wages and marital status. And, the information employees fill out on Form W-4, and a state W-4 form (if applicable) can impact their withholding.
Although it’s not very common, some employees may also be exempt from certain taxes. If an employee is exempt, do not withhold the applicable taxes from their wages.
| Type of Tax | What Is it? |
|---|---|
| Federal Income Tax | Federal income tax is an employee-only tax that depends on the employee’s pay frequency, Form W-4 information, and earnings. |
| State Income Tax | State income tax applies to employee wages in certain states. Rates can either be flat (e.g., standard percentage) or progressive (e.g., wage brackets). |
| Local Income Tax | Local income tax is a type of tax some local governments impose on people who live or work in a specific area. This is separate from FIT and SIT. |
| FICA Tax | FICA tax includes both Social Security and Medicare taxes. The employee and employer split FICA tax. |
| SUI Tax | State unemployment tax is a percentage of employee wages and varies depending on the state. Only three states require employees to contribute to SUI (Alaska, New Jersey, and Pennsylvania). |
| State-specific Tax | State-specific taxes include any tax that is unique to a state, such as Oregon Transit Tax. |
Before running payroll for employees, make sure you know which taxes to withhold from employee wages and the withholding forms you must file. That way, you can avoid any penalties and issues down the road.
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Employee withholding by state: Chart
Along with withholding taxes from employees’ paychecks comes withholding forms. And depending on your state, you may have a few to keep on your radar.
Need to know what taxes to withhold from employee wages and which employee withholding forms to file? We have your back with our employee withholding and forms by state chart.
| State | Taxes to Withhold from Employee Wages | State-specific Withholding Forms for Employers |
|---|---|---|
| Alabama | FIT SIT Local income taxes, if applicable FICA taxes | Form A-6, Employer’s Monthly Return of Income Tax Withheld Form A-1, Employer’s Quarterly Return of Income Tax Withheld Form A-3, Annual Reconciliation of Alabama Income Tax Withheld |
| Alaska | FIT FICA taxes SUI tax | AK 07-1004, Quarterly Contribution Report |
| Arizona | FIT SIT FICA taxes | A1-R, Arizona Withholding Reconciliation Tax Return A1-T, Withholding Transmittal of Wage and Tax Statements A1-QRT, Arizona Quarterly Withholding Tax Return |
| Arkansas | FIT SIT Local income taxes, if applicable FICA taxes | AR3MAR, Employer’s Annual Reconciliation of Income Tax Withheld |
| California | FIT SIT Local income taxes, if applicable FICA taxes California SDI | DE 9, Quarterly Contribution Return and Report of Wages DE 9C, Quarterly Contribution Return and Report of Wages (Continuation) |
| Colorado | FIT SIT Local income taxes, if applicable FICA taxes | DR 1093, Annual Transmittal of State W-2 Forms |
| Connecticut | FIT SIT FICA taxes | CT-W3, Connecticut Annual Reconciliation of Withholding CT-941, Connecticut Quarterly Reconciliation of Withholding |
| D.C. | FIT SIT FICA taxes | FR-900Q, District of Columbia Withholding Quarterly Return FR-900A, District of Columbia Withholding Return for Annual Filer |
| Delaware | FIT SIT Local income taxes, if applicable FICA taxes | W3/W3A, Delaware Annual Withholding Reconciliation |
| Florida | FIT FICA taxes | See Florida’s website for other tax-related forms. |
| Georgia | FIT SIT FICA taxes | G-7M, Georgia Quarterly Withholding Return (Monthly) G-1003, Withholding Income Statement Transmittal G-7M, Withholding Quarterly Return (For Monthly Payer) G-7Q, Withholding Quarterly Return (For Quarterly Payer) |
| Hawaii | FIT SIT FICA taxes Hawaii SDI | HW-3, Employers’ Annual Return and Reconciliation of Hawaii Income Tax Withheld from Wages HW-14/VP-1, Hawaii Withholding Tax Return HW-30, Employer’s Annual Transmittal of Hawaii Income Tax Withheld from Wages |
| Idaho | FIT SIT FICA taxes | Form 967, Idaho Annual Withholding Reconciliation |
| Illinois | FIT SIT FICA taxes | Form IL-941, Illinois Withholding Income Tax Return IL-501, Illinois Withholding Tax Payment |
| Indiana | FIT SIT Local income taxes, if applicable FICA taxes | IN WH-1, Indiana Withholding Tax Voucher Form WH-3, Annual Withholding Tax Form |
| Iowa | FIT SIT Local income taxes, if applicable FICA taxes | IA 44-095, Iowa Withholding Tax Quarterly Return 44-095 IA VSP, Iowa Annual Withholding Reconciliation |
| Kansas | FIT SIT FICA taxes | KW-3, Kansas Annual Withholding Reconciliation KW-5, Withholding Tax Deposit Report KW-3E, Annual Withholding Tax Return (EFT filers only) |
| Kentucky | FIT SIT Local income taxes, if applicable FICA taxes | K-1, Tax withheld for one day, twice monthly, monthly, or quarterly filers (mailed) K-3, Employer’s Return of Income Tax Withheld for Annual Filers (mailed) K-3E, Kentucky Annual EFT Withholding Reconciliation (mailed) LCLRec, Local Annual Withholding Reconciliation |
| Louisiana | FIT SIT FICA taxes | L-3, Transmittal of Withholding Tax Statements L-1, First Quarter Employer’s Return of Louisiana Withholding Tax L1-V, Withholding Payment Voucher (see Louisiana’s website) |
| Maine | FIT SIT FICA taxes | 941ME, Employer’s Return of Maine Income Tax Withholding W-3ME, Annual Reconciliation of Income Tax Withheld 900ME, Payment voucher for Maine income tax withheld |
| Maryland | FIT SIT Local income taxes, if applicable FICA taxes | MW508, Annual Employer Withholding Reconciliation Return MW506/MW506M, Employer Return of Income Tax Withheld |
| Massachusetts | FIT SIT FICA taxes Massachusetts PFML | M-3, Reconciliation of Massachusetts Income Taxes Withheld for Employers M-941, Employer’s Return of Income Taxes Withheld |
| Michigan | FIT SIT Local income taxes, if applicable FICA taxes | 5081, Michigan Sales, Use and Withholding Taxes Annual Return 5080, Sales, Use and Withholding Taxes Monthly/Quarterly Return CF-941, City of Michigan Common Income Tax Withheld Quarterly Return C-941, City of Michigan Common Income Tax Withheld Quarterly Return |
| Minnesota | FIT SIT FICA taxes | Minnesota Quarterly Withholding Worksheet for quarterly filers* Minnesota Quarterly Withholding Worksheet for annual filers* *See Minnesota’s Department of Revenue website for more information |
| Mississippi | FIT SIT FICA taxes | 89-140, Mississippi Annual Withholding Information Return |
| Missouri | FIT SIT Local income taxes, if applicable FICA taxes | MO W-3, Missouri Annual Withholding Reconciliation MO-941, Employer’s Return of Income Taxes Withheld |
| Montana | FIT SIT FICA taxes | MW-3, Montana Annual W-2 1099 Withholding Tax Reconciliation |
| Nebraska | FIT SIT FICA taxes | 941N, Nebraska Income Tax Withholding Return W-3N, Nebraska Reconciliation of Income Tax Withheld Form 501N, Nebraska Monthly Income Tax Withholding Deposit |
| Nevada | FIT FICA taxes | See Nevada’s website for other tax-related forms. |
| New Hampshire | FIT FICA taxes | See New Hampshire’s website for other tax-related forms. |
| New Jersey | FIT SIT Local income taxes, if applicable FICA taxes SUI tax New Jersey Family Leave Insurance New Jersey SDI | NJ-927, New Jersey Employer’s Quarterly Report NJ-W-3, New Jersey Annual Withholding Reconciliation |
| New Mexico | FIT SIT FICA taxes | RPD-41072, State of New Mexico Annual Summary |
| New York | FIT SIT Local income taxes, if applicable FICA taxes New York SDI New York Paid Family Leave | NYS-1, Return of Tax Withheld NYS-45, Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return |
| North Carolina | FIT SIT FICA taxes | NC-5Q, Quarterly Income Tax Withholding Return NC-3, Annual Withholding Reconciliation NC-5, Withholding Return (Quarterly or Monthly Filers) |
| North Dakota | FIT SIT FICA taxes | Form 306, North Dakota Quarterly Withholding Return F-307, North Dakota Transmittal of Wage and Tax Statements |
| Ohio | FIT SIT Local income taxes, if applicable FICA taxes | IT-941, Ohio Annual Withholding Reconciliation IT-501, Ohio Income Tax Withheld Deposit Payment IT-942, Employer’s Quarterly Reconciliation of Income Tax Withheld |
| Oklahoma | FIT SIT FICA taxes | WTH-10001, Oklahoma Quarterly Wage Withholding Tax Return |
| Oregon | FIT SIT Local income taxes, if applicable FICA taxes Oregon Transit Tax Oregon workers’ compensation Oregon Paid Family and Medical Leave Other taxes: Eugene Community Safety Payroll Tax Multnomah County Preschool for All Tax Metro Supportive Housing Tax | OR-WR, Oregon Annual Withholding Tax Reconciliation Report OR OQ, Oregon Quarterly Tax Report OR-STT-1, Oregon Quarterly Statewide Transit Tax Withholding Return OR-STT-2, Statewide Transit Tax Employee Detail Report Oregon Schedule B, State Withholding Tax |
| Pennsylvania | FIT SIT Local income taxes, if applicable FICA taxes SUI tax | PA-W3, Pennsylvania Quarterly Withholding Return REV-1667, Pennsylvania Annual Withholding Reconciliation LCLREC, Local Annual Withholding Reconciliation Check Pennsylvania’s website for additional local-specific forms. |
| Rhode Island | FIT SIT FICA taxes Rhode Island TDI | RI-W-3, Rhode Island Annual Withholding Reconciliation RI-941, Rhode Island Employer’s Quarterly Tax Return and Reconciliation |
| South Carolina | FIT SIT FICA taxes | WH-1606, SC Withholding Fourth Quarter and Annual Reconciliation Return WH-1605, Withholding Quarterly Tax Return |
| South Dakota | FIT FICA taxes | See South Dakota’s website for other tax-related forms. |
| Tennessee | FIT FICA taxes | See Tennessee’s website for other tax-related forms. |
| Texas | FIT FICA taxes | See Texas’s website for other tax-related forms. |
| Utah | FIT SIT FICA taxes | TC-941R, Utah Annual Withholding Reconciliation TC-941, Utah Withholding Return |
| Vermont | FIT SIT FICA taxes | WHT-436, Vermont Quarterly Withholding Reconciliation WHT-434, Vermont Annual Withholding Reconciliation WHT-430, Vermont Withholding Tax Payment |
| Virginia | FIT SIT FICA taxes | VA-6, Virginia Annual Withholding Reconciliation VA-16, Employer’s Payments Quarterly Reconciliation and Return of Income Tax Withheld |
| Washington | FIT FICA taxes Washington Industrial Insurance Other taxes: Washington Paid Family and Medical Leave Washington Long-term Care Insurance | EMS 5208A, Return/Wage Detail Washington Quarterly Contribution WA WC, Employer’s Quarterly Report For Industrial Insurance-WC |
| West Virginia | FIT SIT Local income taxes, if applicable FICA taxes | IT-103, West Virginia Annual Withholding Reconciliation IT-101Q, Employer’s Quarterly Return of Income Tax Withheld |
| Wisconsin | FIT SIT FICA taxes | WT-7, Wisconsin Annual Withholding Reconciliation |
| Wyoming | FIT FICA taxes | See Wyoming’s website for other tax-related forms. |
Keep in mind that forms can vary by state and locality. To ensure you file all of the necessary forms, you can:
- Do your research
- Work with an accountant
- Use full-service payroll software (that way, you don’t have to worry about the forms!)
Another thing to keep in mind is that forms can change from year to year. So, be sure to stay on top of which forms your state requires and if there are any changes. That way, you can stay compliant.
Need an easy way to calculate employee withholdings? Patriot’s fast and affordable payroll software makes it a breeze to pay employees with a simple three-step process. And, if you opt for our full-service payroll software, we’ll collect, file, and deposit your payroll taxes for you (woohoo!). Try it free today!
This is not intended as legal advice; for more information, please click here.
